Outotec Pty Ltd - proposed acquisition of Ausmelt Limited

Acquirer(s)

  • Outotec Pty Ltd

Target(s)

  • Ausmelt Limited

Summary

On 9 December 2009, Outotec Oyj acquired a 19.9% interest in Ausmelt. Outotec Oyj, through its wholly owned subsidiary, Outotec Pty Ltd, has since increased its shareholding in Ausmelt through takeover offer acceptances and market purchases.

As of 8 February 2010, Outotec's (Outotec Oyj and Outotec Pty Ltd) interest in Ausmelt increased to above 90% and Outotec was entitled to compulsorily acquire all of the outstanding shares in Ausmelt. Outotec proposed to commence the compulsory acquisition process to acquire the remaining issued share capital of Ausmelt.

Market definition

The ACCC considered the proposed acquisition in the context of the global market for the supply of smelting technologies for copper and nickel.

Competition analysis

The ACCC's inquiries suggested that there was likely to be limited demand for smelting technologies in Australia in the foreseeable future. To the extent the proposed acquisition influenced customers in Australia, the ACCC considered the proposed acquisition was unlikely to substantially lessen competition in the relevant market on the basis that Outotec's remaining competitors would continue to impose a competitive constraint on the merged firm's ability to increase prices or offer lower quality services to its customers.

Timeline

DateEvent
14/12/2009ACCC commenced review under the Merger Review Process Guidelines. Market inquiries commenced.
08/01/2010Closing date for submissions from interested parties.
27/01/2010Former proposed date for announcement of ACCC's findings. Decision delayed to allow the ACCC to conduct further inquiries.
09/02/2010ACCC announced it would not oppose the proposed acquisition.